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Encana was recently awarded a $2.4 million grant from the Climate Change and Emissions Management (CCEMC) Corporation of Alberta for a "Vent Gas Capture for Engine Fuel Use" program. The successful funding application was spearheaded through Encana's Environmental Innovation Fund (EIF), which will also contribute up to another $3 million to fully fund the program.

The program involves the installation of SlipStream® vent gas capture units at 52 natural gas compressors in our operations in Southern Alberta. The vent gas capture technology was developed by REM Technology Inc., a division of Spartan Controls, based in Calgary. Each SlipStream® unit captures fuel gas (primarily methane) that is vented as part of normal operations. The unit then redirects this gas into the compressor engine's air intake to help fuel the engine. This innovative technology is expected to recover approximately 180 million standard cubic feet of sales gas per year once the program has been fully rolled-out in 2013

This project improves our operational efficiency while at the same time significantly reducing our greenhouse gas (GHG) footprint. The program is expected to reduce our GHG emissions by more than 67,000 tonnes of carbon dioxide equivalent annually and generate an additional $1,000,000 per year worth of carbon offsets.

Climate Change and Emissions Management (CCEMC) Corporation

In Alberta, the Specified Gas Emitters Regulation requires facilities that emit more than 100,000 tonnes of greenhouse gases a year to reduce their emissions intensity by 12 percent relative to a three-year baseline period from 2003 to 2005.

To meet this emission reduction target companies have three compliance options:

facility improvements

purchase offsets

pay a fee of $15 a tonne for every tonne that they exceed their reduction target into the Climate Change and Emissions Management Fund.

The CCEMC is an arms-length organization independent from the Alberta government which manages the investment of the CCEMF funds in projects, technologies and other initiatives to reduce greenhouse gas emissions and improve Alberta's ability to adapt to climate change.